CME Group has posted a notice of summary action as to Citigroup Global Markets, Inc. Citi will have to pay a small fine for violations of block trade rules.
The rules in question state:
526.F. BLOCK TRADES
Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.
MRAN RA-2103-5 (in part)
Market participants must accurately report the execution time of the block trade.
On eight occasions in June 2021, Citigroup Global Markets, Inc. did not report a block trade in a timely manner or with an accurate execution time to the Exchange. These block trades were executed in June 2021 and September 2021 S&P 500 – Materials Sector Index, S&P 500 – Financial Sector Index, S&P 500 – Industrial Sector Index, and S&P 500 Consumer Staples Index.
Hence, a fine in the amount of $2,500 was assessed against Citigroup Global Markets, Inc. for its violations of CME Rule 526, and CME Rule 526.F.
The notice is effective September 13, 2021.